Thus far, 2020 has been a whirlwind for investors. From the market crash in February to the sharp rise in global equities following the Covid-19 vaccine news, it’s been a bumpy ride. Tricky market conditions make finding the best stocks to invest in of paramount importance.
Furthermore, as we approach the end of another calendar year, investors will naturally be thinking of the best shares to buy ahead of 2021. With that in mind, here are five of my top picks.
The growth potential of technology stocks
When it comes to picking stocks with serious long-term growth potential, those in the tech sector immediately spring to my mind. As we’ve witnessed over the last year, we rely on technology now more than ever. What’s more, that trend is likely to continue given the impact of digital technologies and automation in the workplace.
As such, when looking for the best UK shares to buy right now, I’ll start by considering a handful of high-quality tech firms. For example, think about online food retailer Ocado, whose shares have rocketed 94% since the beginning of March. With no physical stores, the company carries out all deliveries from its state-of-the-art warehouses, which harness the power of robotics.
Moreover, IT, consulting, and software services firm Kainos has been catching my eye recently. The company provides critical tech services to a range of businesses, governments, and healthcare providers. With 360 customers around the world, Kainos’ clientele is rapidly expanding. As a result, I expect its share price to rise in tandem. What’s more, with revenues and profits rapidly increasing over the last few years, I’m excited to see if the company can continue with such impressive earnings growth.
Shifting consumer trends
Speaking of industries we’ve come to rely on, the global pandemic has highlighted the extraordinary appeal of online retail. With lockdown restrictions resulting in store closures across the country, many companies were forced to shift to online retail. Moreover, businesses with an already strong online presence really reaped the benefits.
Take AO World as a prime example. The online retailer of electrical products saw business boom in the wake of the pandemic, resulting in share price growth of 317% this year. CEO John Roberts believes AO’s market has changed forever and I’m inclined to agree. Moving forward, I’m confident the company can capitalise on the structural shift in consumer behaviour and continue to establish a strong market position in the e-commerce industry.
No discussion of online retail would be complete without mentioning either ASOS or Boohoo. The two online fashion companies have exploded in popularity over recent years. On top of this, they’re perfectly positioned to benefit from evolving consumer behaviour. Both have registered impressive revenue growth in recent years, and I don’t see any sign of that slowing down significantly. With that in mind, both companies are among my best UK shares to buy right now.